Mandatory electronic cash registers are expected to come into effect from 2028.

The end of the open cash register is approaching: The German government plans to introduce mandatory electronic cash registers and the obligation to provide digital receipts from 2028.

This article is part of the special topic "Cash register management: What do businesses need to pay attention to?"

There is currently no legal requirement for electronic cash registers in Germany. Businesses can still use traditional cash registers if they wish . In most European countries, electronic cash registers or systems directly connected to tax authorities for cash receipts have long been mandatory. The German government is now planning, as already stipulated in the coalition agreement, to introduce mandatory electronic cash registers from 2028 for businesses with a total gross revenue exceeding €100.000. This is intended to curb tax fraud related to cash receipts.

Businesses will then need a point-of-sale system equipped with a certified technical security device (TSE) (§ 146b AO-E). They would have to abandon their open cash registers. The draft bill from the Federal Ministry of Finance is now available. The details of its implementation will be discussed in the further legislative process. The law has therefore not yet been passed.

The report states that the potential for tax evasion is too high, especially in cash-intensive industries, when using open cash registers. Electronic cash registers would significantly simplify cash register audits and are less susceptible to manipulation, "since the data is immediately cryptographically secured and recorded in these systems."  

Tax offices could grant and revoke exemptions from the obligation to use a cash register (§ 146b AO-E). Exemptions are to be granted in individual cases based on undue hardship, but also generally. This is to be regulated by a statutory instrument issued by the Federal Ministry of Finance.

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Costs: The ministry estimates costs of €400 to €600 for a stationary cash register and around €100 for setting up a cloud-based cash register on a smartphone. Inexpensive, technically suitable tablets would cost around €400. For cloud-based cash registers, it must also be taken into account that a receipt printer is required. Mobile devices are available from €250. In addition, there are the annual license fees for the TSE (Technical Security Equipment).

The mandatory use of cash registers is to be evaluated after five years. At that time, the possibility of requiring cash registers for businesses with a turnover below €100.000 will also be considered. Currently, there are approximately 2,2 million electronic cash registers (27 percent of which are cloud-based) and 114.000 open cash registers, according to the ministry.

Unlike the ministry, the Central Association of German Crafts (ZDH) estimates the costs for those affected (catering, hairdressing or retail trade) to be significantly higher and intends to advocate for financial support for businesses – for example through special depreciation rules. 

New rules regarding the receipt obligation: Obligation to provide a receipt

The ministry also intends to amend the regulations regarding the obligation to issue receipts. Currently, businesses can issue receipts in paper form or – with the customer's consent – ​​in digital form. From 2028, receipts will be mandatory and must be provided digitally . The requirement for customer consent for this provision, as stipulated in Section 6, Sentence 5 of the Cash Register Security Ordinance (KassenSichV), will be eliminated. Simultaneously, the obligation to issue paper receipts will be abolished on January 1, 2028.

The draft bill states that many point-of-sale systems (especially cloud-based systems) already offer the option of issuing receipts digitally via email, as a QR code, or printed on request . Therefore, it would only require programming effort from the point-of-sale system manufacturers.

Failure to issue receipts can be punished as an administrative offense with a fine of up to €5.000. Failure to comply with cash register regulations could result in a fine of up to €25.000.

 The first draft bills are expected to follow the initial draft over the course of the summer.

Action Plan Against Tax Crime: The mandatory use of electronic cash registers is part of the action plan against tax and financial crime presented by the Federal Ministry of Finance and the Federal Ministry of Justice in mid-July. Federal Finance Minister Lars Klingbeil stated: "The honest shouldn't be the ones who lose out. That's why we're increasing investigative pressure and the risk of detection in the fight against tax fraud. We're committed to justice. Those who defraud our state and our society shouldn't get away with it. We want to ensure that higher penalties are imposed in the future. No one should be able to simply buy their way out of trouble with a voluntary disclosure."

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